Rosneft, Eni Sign Completion Deed for Russian Offshore Projects

Rosneft and Eni S.p.A., acting through their subsidiaries Rosneft JV Projects S.A. and Eni Energy Russia BV, signed Completion Deed for the Russian offshore projects (regarding Fedynsky, Central Barents blocks in the Barents Sea and Western Chernomorsky block in the Black Sea).

The agreement was signed today at the Saint Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and Eni CEO Paolo Scaroni in the presence of the Russian President Vladimir Putin.

The companies announced the formation of organizational structures for cooperation, signed all definitive agreements and fulfilled all conditions required to develop the offshore projects in the Barents Sea and in the Black Sea under the Strategic Cooperation Agreement entered into by the parties in 2012, which provides for joint development of Russian offshore blocks, technological and staff exchange and Rosneft’s participation in Eni’s international projects.

Rosneft and Eni formed JVs to operate each of the projects with Rosneft holding a 66.67% stake and Eni holding the remaining 33.33% stake.

Eni undertakes to provide full carry financing to perform license obligations for oil and gas exploration. Besides, Eni will compensate Rosneft for 33.33% of expenses on acquisition of licenses and historical expenses on completed exploration for each of the projects.

[mappress]

Press Release, June 21, 2013